UPDATED CRITERIA FOR INSTALLMENT AGREEMENTS

PURPOSE OF BULLETIN

To inform staff of a uniform Installment Agreement (IA) Policy utilized throughout the department and our public website.

BACKGROUND

In September 2005, the Accounts Receivable Management, Compliance and Resolution Services Bureau (CAReS) initiated a pilot program to expand the dollar amount to $25,000 and the time criteria to 60 months.

In December 2006, the pilot program became permanent; however, the public website and the Electronic Installment Agreement (eIA) system were not updated.

EFFECTIVE DATE

September 2009.

UPDATED INSTALLMENT AGREEMENT POLICY

The following changes were implemented to ensure consistency system wide:

Case balance must be $25,000 or less.

Account will be paid in full within 60 months or less.

All required valid personal income tax returns are filed.

Note: Financial hardships must exist. Approvals will be based on the ability to pay and compliance history. A lien may be filed, and/or a financial statement requested as a condition for approval.

In September 2009, our public website and the Electronic Installment Agreement (eIA) system updated with the current criteria.

PREVIOUS INSTALLMENT AGREEMENT POLICY

An installment agreement request could be processed if the following conditions were met:

Case balance was $10,000 or less.

The account would be paid in full within 36 months or less.

All required personal income tax returns were filed.

TAXPAYER INQUIRIES

Taxpayers can visit ftb.ca.gov and search for installment agreements, or call our automated line 800.689.4776.